Starting a Home-Based Mail Order Business
Starting a mail-order business can be accomplished on a small budget, right from the comfort of your office or kitchen table. Mail-order businesses may be very successful simply because many people don't have the time to go to department stores to shop. Every year, over 131 million Americans order goods by phone or mail, as explained on the Entrepreneur website. Starting a home-based mail-order business eliminates the cost of hiring a fulfillment house to ship goods to your customers, or having to rent office space.
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Instructions
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Decide what products to sell. Many items may be sold by mail, from books to jewelry. Select a product to sell that fulfills a customer's need or desire. Think of products that may make a customer feel more attractive, healthier or wealthier. Choose products to sell that the customer will need to come back and buy from you again. For that reason, the products you sell must be of good quality and provide customers with good value for their money. Choose a product that can be attractively priced, with enough room for a sizable profit. Furthermore, the product should be easy to package and ship because you'll be doing all the work at home.
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Buy office supplies. To run your home-based mail-order business you'll need stationery, pens and other office supplies. A computer with small business accounting software will be extremely helpful in terms of tracking expenses, inventory and sales. Otherwise, you can purchase a ledger from Staples or Office Depot to help you organize valuable business data. Internet access, fax and phone lines will help your home-based mail-order business run more smoothly by increasing your ability to communicate with suppliers and customers more effectively.
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Purchase a mailing list. In order to make sure you're buying the correct mailing list, you must conduct market research to determine who your customers are. In other words, you must determine who is most likely to purchase the products you sell. For example, 35- to 60-year-old men may be more likely to purchase a multivitamin for men than 18- to 23-year-olds. In this way, your mailing list may turn out to be one of the most important tools to get a sale. Make sure your list contains mailing information for those most likely to purchase your product. There are thousands of lists that may be purchased from a list broker. You can locate a list broker in business directories, trade magazines and direct-mail publications. The cost of purchasing a mailing list may vary from broker to broker.
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Print and mail your advertisement. The advertisement copy should be well written, and focus on your customers' desires. However, avoid words or statements that mislead your customers. Instead, your advertisement should detail how your products will enhance your customers' lives in some way. The order form should be clear and to the point. The simpler the order form, the better. Having a complex order form will confuse the customer and increase the chances that you'll lose the sale. Clearly indicate the return policy. Locate a printer that will print your sales materials at a reasonable price. However, don't sacrifice quality for cheaper price. If your advertisement looks bad, customers will be less likely to purchase from you. Additionally, you may receive a bulk mailing rate from the Post Office, depending on the number of pieces in your mailing campaign.
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Fulfill customer orders. Keep track of what each customer orders and the amount of inventory on hand. Determine the costs involved to ship your orders. Make sure packages are delivered to customers in a timely fashion. Take calls regarding customer complaints. Collect payments. Issue customer refunds and replace any damaged merchandise. In other instances, you may choose to hire a fulfillment house or drop shipper to process orders for your business and handle returns.
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